Sana Biotechnology Stock Volatility

SANA Stock  USD 10.00  0.54  5.71%   
Sana Biotechnology is relatively risky given 3 months investment horizon. Sana Biotechnology owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.22, which indicates the firm had a 0.22% return per unit of risk over the last 3 months. We were able to interpolate twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.71% are justified by taking the suggested risk. Use Sana Biotechnology Risk Adjusted Performance of 0.1324, semi deviation of 4.43, and Coefficient Of Variation of 451.5 to evaluate company specific risk that cannot be diversified away. Key indicators related to Sana Biotechnology's volatility include:
720 Days Market Risk
Chance Of Distress
720 Days Economic Sensitivity
Sana Biotechnology Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Sana daily returns, and it is calculated using variance and standard deviation. We also use Sana's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Sana Biotechnology volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Sana Biotechnology can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Sana Biotechnology at lower prices. For example, an investor can purchase Sana stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Sana Biotechnology's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

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Sana Biotechnology Market Sensitivity And Downside Risk

Sana Biotechnology's beta coefficient measures the volatility of Sana stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Sana stock's returns against your selected market. In other words, Sana Biotechnology's beta of 2.74 provides an investor with an approximation of how much risk Sana Biotechnology stock can potentially add to one of your existing portfolios. Sana Biotechnology is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sana Biotechnology's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sana Biotechnology's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Sana Biotechnology Demand Trend
Check current 90 days Sana Biotechnology correlation with market (NYSE Composite)

Sana Beta

    
  2.74  
Sana standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  7.88  
It is essential to understand the difference between upside risk (as represented by Sana Biotechnology's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Sana Biotechnology's daily returns or price. Since the actual investment returns on holding a position in sana stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Sana Biotechnology.

Sana Biotechnology Stock Volatility Analysis

Volatility refers to the frequency at which Sana Biotechnology stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Sana Biotechnology's price changes. Investors will then calculate the volatility of Sana Biotechnology's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Sana Biotechnology's volatility:

Historical Volatility

This type of stock volatility measures Sana Biotechnology's fluctuations based on previous trends. It's commonly used to predict Sana Biotechnology's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Sana Biotechnology's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Sana Biotechnology's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Sana Biotechnology Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Sana Biotechnology Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 2.7429 . This usually implies as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Sana Biotechnology will likely underperform.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Sana Biotechnology or Biotechnology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Sana Biotechnology's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Sana stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Sana Biotechnology has an alpha of 1.3778, implying that it can generate a 1.38 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Sana Biotechnology's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how sana stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Sana Biotechnology Price Volatility?

Several factors can influence a stock's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Sana Biotechnology Stock Risk Measures

Given the investment horizon of 90 days the coefficient of variation of Sana Biotechnology is 460.44. The daily returns are distributed with a variance of 62.03 and standard deviation of 7.88. The mean deviation of Sana Biotechnology is currently at 5.16. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
1.38
β
Beta against NYSE Composite2.74
σ
Overall volatility
7.88
Ir
Information ratio 0.20

Sana Biotechnology Stock Return Volatility

Sana Biotechnology historical daily return volatility represents how much of Sana Biotechnology stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 7.8762% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.573% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Sana Biotechnology Volatility

Volatility is a rate at which the price of Sana Biotechnology or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Sana Biotechnology may increase or decrease. In other words, similar to Sana's beta indicator, it measures the risk of Sana Biotechnology and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sana Biotechnology fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Sana Biotechnology, Inc., a biotechnology company, focuses on utilizing engineered cells as medicines. The company was incorporated in 2018 and is headquartered in Seattle, Washington. Sana Biotechnology operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 461 people.
Sana Biotechnology's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Sana Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Sana Biotechnology's price varies over time.

3 ways to utilize Sana Biotechnology's volatility to invest better

Higher Sana Biotechnology's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Sana Biotechnology stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Sana Biotechnology stock volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Sana Biotechnology investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Sana Biotechnology's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Sana Biotechnology's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Sana Biotechnology Investment Opportunity

Sana Biotechnology has a volatility of 7.88 and is 13.82 times more volatile than NYSE Composite. 69 percent of all equities and portfolios are less risky than Sana Biotechnology. You can use Sana Biotechnology to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Sana Biotechnology to be traded at $12.5 in 90 days.

Modest diversification

The correlation between Sana Biotechnology and NYA is 0.2 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Sana Biotechnology and NYA in the same portfolio, assuming nothing else is changed.

Sana Biotechnology Additional Risk Indicators

The analysis of Sana Biotechnology's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Sana Biotechnology's investment and either accepting that risk or mitigating it. Along with some common measures of Sana Biotechnology stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Sana Biotechnology Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Sana Biotechnology as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Sana Biotechnology's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Sana Biotechnology's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Sana Biotechnology.
When determining whether Sana Biotechnology offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Sana Biotechnology's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Sana Biotechnology Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sana Biotechnology Stock:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Sana Biotechnology. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.
For information on how to trade Sana Stock refer to our How to Trade Sana Stock guide.
You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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When running Sana Biotechnology's price analysis, check to measure Sana Biotechnology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sana Biotechnology is operating at the current time. Most of Sana Biotechnology's value examination focuses on studying past and present price action to predict the probability of Sana Biotechnology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sana Biotechnology's price. Additionally, you may evaluate how the addition of Sana Biotechnology to your portfolios can decrease your overall portfolio volatility.
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Is Sana Biotechnology's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sana Biotechnology. If investors know Sana will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sana Biotechnology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Sana Biotechnology is measured differently than its book value, which is the value of Sana that is recorded on the company's balance sheet. Investors also form their own opinion of Sana Biotechnology's value that differs from its market value or its book value, called intrinsic value, which is Sana Biotechnology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sana Biotechnology's market value can be influenced by many factors that don't directly affect Sana Biotechnology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sana Biotechnology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sana Biotechnology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sana Biotechnology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.